PT PP Presisi Tbk (PPRE) plans to issue bonds with an target of around IDR 750 billion which will be used as capital expenditure and working capital loans (KMK). PP Presisi's Director of Finance, Risk Management and Legal, M Arif Iswahyudi projects, from the continuous public offering (PUB) I of phase II bonds, the company will be able to raise funds of approximately IDR 750 billion. "As much as 70% will be allocated as capex and the remaining 30% as KMK," said Arif in Jakarta, Monday (20/3/2023). Arif further explained, the bond scheme is medium to long term financing in accordance with the term of project that the company will get in the mining services sector.
In addition, the scheme also adjusts to the financing period for the equipment that the company will purchase for use in the mining services project. This is because the company is still continuing the mining services project it has previously acquired. "We are still in the process of repeating orders for new contracts in mining service projects that we previously obtained on an ongoing basis," Arif added. Furthermore, this year the company is also working on other civil projects such as the construction of toll roads and other supporting infrastructure projects. Through the corporate action in the form of releasing the bonds, Arif hopes to boost PP Presisi's performance by 20% to 25%.
Moreover, this PTPP subsidiary is focusing on strengthening its position as the main contractor in both the mining and construction services sectors. PP Presisi is also targeting new contracts this year to increase by 20% -30% or the equivalent of Rp. 6 trillion to Rp. 7 trillion, with the acquisition of new contracts in mining services increasing by more than 50%. The company's performance growth target this year is quite reasonable when it reflects on PP Presisi's positive performance throughout 2022. The proof is that the state-owned construction and mining services company managed to record a net profit that skyrocketed by 23.7% to IDR 182 billion compared to net profit at the end of 2021 of IDR 147 billion. The growth in consolidated net profit is in parallel with the increase in the company's revenue by 29.5% from Rp 2.8 trillion previously to Rp 3.6 trillion.
As for the structure, the company's revenue growth in 2022 is supported by revenue growth in the mining services segment to 34% from the previous 9% in 2022. This growth is due, among other things, to contributions from sustainable income from the Hauling Road Weda Bay project and the Hengjaya Mineralindo project.